China’s Zhipu Eyes 2025 IPO with Backing from Alibaba and Tencent

Chinese AI startup Zhipu is preparing for a potential IPO in 2025, with China International Capital Corp (CICC) (HK:3908) appointed as the lead underwriter. Backed by tech giants Alibaba (NYSE:BABA) and Tencent Holdings (HK:0700), the six-year-old company aims to be among the first major ChatGPT competitors to go public.

Zhipu has attracted significant attention in China’s booming artificial intelligence sector, especially after the rise of rival AI startup DeepSeek. The company offers low-cost AI services and has developed advanced language models, including AutoGLM, which it claims surpasses OpenAI’s GPT-4o in performance.

In March, Zhipu secured 1 billion yuan (approximately $140 million) in funding, led by state-backed investors. The capital injection underscores Beijing’s growing emphasis on accelerating AI innovation and supporting domestic tech firms amid rising global competition.

Despite facing headwinds such as a recent inclusion on the U.S. trade blacklist, Zhipu continues to advance its AI capabilities and expand its offerings. The IPO filing is expected as early as October, positioning the startup as a key player in China’s AI race and a potential leader in the global generative AI landscape.

As investor interest in artificial intelligence intensifies, Zhipu’s public debut could mark a pivotal moment for China’s tech industry, showcasing the nation's progress in developing homegrown AI solutions.